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TMI Blog2017 (3) TMI 1484X X X X Extracts X X X X X X X X Extracts X X X X ..... passed in Special Civil Application No. 352 of 2013 was upheld. 3. The facts necessary for decision of the case are that 28,176 square metres of land in Savarkundla was given on lease to the appellant Company in the year 1922 for a period of 30 years for running an oil mill. The lease expired in the year 1952. Thereafter, fresh lease deed was executed in favour of the appellant by the Administrator of the Savarkundla Municipality on 18.09.1956. In this lease deed it was mentioned that on this leased area, there are factories, residential units, warehouse (godown), press factory, expeller and office buildings etc. which were constructed by the appellant. The lease deed was granted for a further period of 30 years. Relevant portion of the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oper. Since the Municipality is an autonomous body and the Rent Act is not applicable to the land owned by a local autonomous institution. In case of such properties the Rights of Tenants and Property Owners are as per the provisions of the Transfer of Properties Act. The Municipality is responsible to grant the permission for construction as per the permission of construction granted by the Company." The Arbitrator held that the appellant company was entitled to renewal of the lease deed and was also entitled to make construction on the land in question connected with its business. This Award was made Rule of the Court on 26.04.1978. 6. Though the Award was passed in favour of the company and the Decree in terms of the Award had also be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out land only for a period of 30 years in terms of Section 65 (2) of the Gujarat Municipalities Act, 1963 which reads as follows: "65. Powers of municipality to sell, lease, and contract.- xxx xxx xxx (2) In the case of every lease or sale of land under sub-section (1) of section 146 and of a lease of immovable property for a term exceeding ten years and of every sale or other transfer of such immovable property, the market value of which exceeds one lakh of rupees, the previous permission of the State Government is required: Provided that in the case of a lease or sale of land under sub-section (1) of section 146 no such permission shall be granted if such land forms a street or part of a street which has been declared to be a p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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